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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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An act relating to utility services; amending s. 2
180.19, F.S.; requiring that a new agreement, or an 3
extension, renewal, or material amendment of an 4
existing agreement, made by a municipal utility to 5
certain entities to provide certain utility services 6
at retail be in writing; requiring that certain public 7
meetings be held as a condition precedent to the 8
effectiveness of a new or extended agreement under 9
which a municipality will provide specified utility 10
services in other municipalities or unincorporated 11
areas; specifying requirements for such public 12
meetings; requiring that rates, fees, and charges 13
imposed for water or sewer utility services comply 14
with specified provisions; requiring a representative 15
from certain municipalities to annually conduct public 16
customer meetings; providing requirements for such 17
meetings; defining the terms "appointed 18
representative" and "governing body"; amending s. 19
180.191, F.S.; revising provisions relating to 20
permissible rates, fees, and charges imposed by 21
municipal water and sewer utilities on consumers 22
located outside the municipal boundaries; authorizing 23
a municipality to continue to impose a surcharge on 24
certain consumers for a specified purpose; requiring 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
the phase-out of such surcharges by the earlier of a 26
specified date or the retirement, expiration, or 27
refinancing of the applicable debt obligation; 28
creating s. 180.192, F.S.; requiring municipalities 29
that provide specified utility services to report 30
certain information by a specified date, and annually 31
thereafter, to the Florida Public Service Commission; 32
providing requirements for such information; providing 33
penalties; requiring the commission to compile such 34
information and submit a report by a specified date, 35
and annually thereafter, to the Governor and the 36
Legislature; authorizing commission jurisdiction over 37
specified utilities; providing construction; 38
preempting to the state the subject of a regional 39
utilities authority; providing a declaration of an 40
important state interest; providing effective dates. 41
42
Be It Enacted by the Legislature of the State of Florida: 43
44
Section 1. Subsection (3) is added to section 180.19, 45
Florida Statutes, to read: 46
180.19 Use by other municipalities and by individuals 47
outside corporate limits.— 48
(3)(a) A new agreement, or an extension, renewal, or 49
material amendment of an existing agreement, to provide 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
electric, water, natural gas, or sewer utility service by a 51
municipality to any other municipality or the owners or 52
association of owners of lots or lands outside of its corporate 53
limits or within the limits of any other municipality at retail 54
must be in writing. Such agreement may not become effective 55
before an appointed representative of the municipality that 56
provides the service or intends to provide the service, in 57
conjunction with the governing body of each municipality and 58
unincorporated area served or to be served, has participated in 59
a public meeting. Such meeting is not required to be a separate 60
public meeting, but it must be held within each municipality and 61
unincorporated area served or to be served for purposes of 62
providing information and soliciting public input on: 63
1. The nature of the services to be provided or changes to 64
the services being provided; 65
2. The rates, fees, and charges to be imposed for the 66
services provided or intended to be provided, including any 67
differential with the rates, fees, and charges imposed for the 68
same services on customers located within the boundaries of the 69
serving municipality, the basis for the differential, and the 70
length of time that the differential is expected to exist; 71
3. The extent to which revenues generated from the 72
provision of the services will be used to fund or finance 73
nonutility government functions or services; and 74
4. Any other matter deemed relevant by the parties to the 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
agreement. 76
(b) Rates, fees, and charges imposed for water or sewer 77
utility services provided pursuant to subsection (1) must comply 78
with s. 180.191. 79
(c) A representative of each municipality that provides 80
electric, water, natural gas, or sewer utility services pursuant 81
to subsection (1), in conjunction with the governing body of 82
each municipality and unincorporated area in which it provides 83
services, shall annually conduct a public customer meeting. Such 84
meeting is not required to be a separate public meeting, but 85
must be held within each municipality and unincorporated area 86
for purposes of soliciting public input on utility-related 87
matters, including fees, rates, charges, and services. 88
(d) As used in this subsection, the term: 89
1. "Appointed representative" means an executive-level 90
leadership employee of a municipality, or of such municipality's 91
related and separate utility authority, board, or commission, 92
specifically appointed by the governing body to serve as its 93
representative for the purposes of this subsection. 94
2. "Governing body" means: 95
a. A governing body of a municipality in which services 96
are provided or proposed to be extended; or 97
b. A board of county commissioners of a county in which 98
services are provided or proposed to be extended, if services 99
are provided or proposed to be extended in an unincorporated 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
area within the county. 101
Section 2. Subsection (1) of section 180.191, Florida 102
Statutes, is amended to read: 103
180.191 Limitation on rates charged consumer outside city 104
limits.— 105
(1) Any municipality within this the state operating a 106
water or sewer utility outside of the boundaries of such 107
municipality shall charge consumers outside the boundaries 108
rates, fees, and charges determined in one of the following 109
manners: 110
(a) It may charge the same rates, fees, and charges as 111
consumers inside the municipal boundaries. However, in addition 112
thereto, the municipality may add a surcharge of not more than 113
25 percent of such rates, fees, and charges to consumers outside 114
the boundaries. Fixing of such rates, fees, and charges in this 115
manner may shall not require a public hearing except as may be 116
provided for service to consumers inside the municipality. 117
(b) It may charge rates, fees, and charges that are just 118
and equitable and which are based on the same factors used in 119
fixing the rates, fees, and charges for consumers inside the 120
municipal boundaries. In addition thereto, the municipality may 121
add a surcharge not to exceed 25 percent of such rates, fees, 122
and charges for said services to consumers outside the 123
boundaries. However, the total of all Such rates, fees, and 124
charges for the services to consumers outside the boundaries may 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
shall not be more than 25 50 percent in excess of the rates, 126
fees, and charges total amount the municipality charges 127
consumers served within the municipality for corresponding 128
service. No Such rates, fees, and charges may not shall be fixed 129
until after a public hearing at which all of the users of the 130
water or sewer systems; owners, tenants, or occupants of 131
property served or to be served thereby; and all others 132
interested shall have an opportunity to be heard concerning the 133
proposed rates, fees, and charges. Any change or revision of 134
such rates, fees, or charges may be made in the same manner as 135
such rates, fees, or charges were originally established, but if 136
such change or revision is to be made substantially pro rata as 137
to all classes of service, both inside and outside the 138
municipality, a no hearing or notice is not shall be required. 139
(c) In addition to the rates, fees, and charges authorized 140
under this section, a municipality may continue to impose a 141
surcharge on consumers outside the municipal boundaries if the 142
surcharge was in effect before March 1, 2026, but only to the 143
extent necessary to comply with the terms of bond covenants in 144
effect as of July 1, 2024. Such surcharges must be phased out by 145
July 1, 2029, or upon the retirement, expiration, or refinancing 146
of the applicable debt obligation, whichever occurs earlier. 147
Section 3. Effective July 1, 2026, section 180.192, 148
Florida Statutes, is created to read: 149
180.192 Reporting requirements related to municipal 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
utility service.— 151
(1) By January 1, 2027, and annually thereafter, each 152
municipality that provides electric, water, natural gas, or 153
sewer utility services outside of its municipal boundaries shall 154
provide a report to the Florida Public Service Commission which 155
identifies, for each type of utility service provided by the 156
municipality: 157
(a) The number and percentage of customers that receive 158
utility services provided by the municipality at a location 159
outside the boundaries of the municipality; 160
(b) The volume and percentage of sales made to such 161
customers, and the gross revenues generated from such sales; 162
(c) Whether the rates, fees, and charges imposed on 163
customers that receive services at a location outside the 164
municipality's boundaries are different than the rates, fees, 165
and charges imposed on customers within the boundaries of the 166
municipality, and, if so, the amount and percentage of the 167
differential; and 168
(d) The percentage of revenues generated from the 169
provision of utility services that were used to fund or finance 170
nonutility government functions or services of the municipality, 171
and the percentage of the municipality's nonutility budget that 172
was funded by such revenues. 173
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A municipality that fails to file the report required by this 175
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subsection is subject to the penalties provided in ss. 366.095 176
and 367.161. 177
(2) By March 31, 2027, and annually thereafter, the 178
commission shall compile the information provided pursuant to 179
subsection (1) and submit a report containing that information 180
to the Governor, the President of the Senate, and the Speaker of 181
the House of Representatives. 182
(3) Notwithstanding s. 367.171, the commission shall have 183
jurisdiction over all utilities identified in subsection (1) for 184
the limited purpose of enforcing the requirements of this 185
section. This section does not otherwise modify or extend the 186
authority of the commission provided by law with respect to any 187
municipal utility that is required to comply with subsection 188
(1). 189
Section 4. (1) The subject of a regional utilities 190
authority created by the Legislature through charter amendment 191
after January 1, 2023, is expressly preempted to the state. 192
(2) This section shall take effect upon this act becoming 193
a law. 194
Section 5. The Legislature finds and declares that this 195
act fulfills an important state interest. 196
Section 6. Except as otherwise expressly provided in this 197
act and except for this section, which shall take effect upon 198
becoming a law, this act shall take effect July 1, 2027. 199